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Users cannot install programs despite having Local Admin rights

By wayne62682 ·
I recently upgraded computers to XP Service Pack 3 - I followed best practices and each user is set as a local administrator on their machine, with normal user rights via Active Directory.

On every machine that's been upgraded, installation of programs is not allowed and the user gets an error saying they don't have permission to install programs; this is despite them having full local Admin rights (I've checked this, and under local users and groups the user account is a member of the Administrators group). The computers with SP2 aren't facing this problem.

Was there some change in SP3 that caused this, and how can I fix it? The users are very annoyed that I need to log off and log on locally as the Administrator user to install any programs for them.

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